receipts of accounts payee cheque payment

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rajesh bhandari (Querist)

22 March 2009 We had made the payments to parties by crossed account payee cheque . Auditors asking us for receipts of the payments.
is it necessary ?

rajesh bhandari

rajesh bhandari (Querist)

22 March 2009 no reply

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)

22 March 2009 when you are making payment to party, for better Internal control you should take receipts of the payment.

In case you don't have taken receipt (due to any reason), just show them the the ledger a/c with supporting BRS and still if not agrees, tell them to do external confirmation.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)

22 March 2009 It is not compulsory under any statute.
Auditors are asking for the sake of their verification and better control.

rajesh bhandari

rajesh bhandari (Querist)

22 March 2009 can I use this as and opion report

K V Subba Rao

K V Subba Rao (Expert)

22 March 2009 Auditor is not raising any unjustifiable question. When a Cheque is account payee crossed, no doubt payment goes to the Payee as written on the Cheque but how can an Auditor satisfy himself that cheques were account payee crossed before issue. You can't expect auditor to rely solely on auditee's version

So it is desirable to collect receipt and place it on record to satisy the auditor. In a few cases, where receipts could not be collcected, auditor may like to opt for external confirmation but this could be done in a few cases but not all

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